Bitcoin Price Prediction, April 2: $90,000 Looms as Tariffs and Shorts Collide

Bitcoin’s price dances near $85,000 as markets brace for President Donald Trump’s “Liberation Day” tariffs, set to hit on April 3rd and 4th. The crypto has eked out a 2.6% gain in the last 24 hours, but uncertainty keeps it—and other risk assets—locked in a tense holding pattern.  Nic Puckrin, crypto analyst and The Coin Bureau founder, points out that Bitcoin recently filled its weekend CME gap between $83,000 and $84,000. Yet, with the 200-day average looming above and 24-hour liquidations staying tame at under $250 million, the market’s next move hangs in the balance. https://x.com/AFP/status/1907237478588928223?t=Sv-0HZ-Nc6nYjuLWGm6CIg&s=19 Short Sellers Face a $9.41 Billion Reckoning A massive $9.41 billion in short positions teeters on the edge, ready to unravel if Bitcoin claws its way to $90,000. Shorts have piled up between $80,000 and $90,000, setting the stage for a potential squeeze that could ignite a sharp rally. Just last week, a push to $87,000 torched $77 million in shorts, hinting at the chaos a breach of $90,000 could unleash.  Puckrin pegs $88,000 as the first key level to watch in a breakout, though he warns that thin trading volume could cap any surge unless momentum builds. Forced buybacks from trapped short sellers might just be the spark to send prices soaring. Tariffs Aren’t the Only Weight on Bitcoin Beyond the tariff drama, Bitcoin’s been wrestling with headwinds since before Trump’s January 21 announcement of 10% Chinese import duties. It repeatedly stumbled below $100,000 late last year, even as spot Bitcoin ETFs raked in $2.75 billion in net inflows over three weeks post-tariff news.  Hype around Trump’s “strategic national Bitcoin price predicitons stockpile” fizzled, leaving traders deflated. Add in a cooling job market—US job openings hit a four-year low in February—and tame inflation steering cash toward stocks and real estate, and Bitcoin’s upside has been stifled. Risk aversion is creeping in, and it’s showing. Breakout or Breakdown? The $79,000-$90,000 Tug-of-War The outlook’s a coin toss. Puckrin sees a 50-50 long-short ratio, reflecting a market on a knife’s edge. A harsh tariff rollout could shove Bitcoin down to $79,000—or even $73,000 if panic takes hold. But low volume and a Fear & Greed Index stuck in “fear” territory hint at a possible bottom. James Butterfill of CoinShares argues that while tariffs might sting short-term, a weakening economy could eventually flip the script, boosting Bitcoin as stocks falter. Puckrin adds that softer-than-expected tariff news could spark a breakout, but until clarity arrives, Bitcoin’s stuck in this rangebound limbo.